MicroStrategy Doubles Down on Bitcoin with $2 Billion Fundraising Plan
MicroStrategy, the enterprise software firm turned Bitcoin powerhouse, has once again expanded its cryptocurrency holdings. Between December 30 and 31, 2024, the company acquired 1,070 Bitcoin for approximately $101 million**, bringing its total holdings to **447,470 BTC**—valued at around **$44.3 billion at current market prices.
"MicroStrategy has acquired 1,070 BTC for ~$101 million at ~$94,004 per bitcoin and has achieved BTC Yield of 48.0% in Q4 2024 and 74.3% in FY 2024."
— Michael Saylor, Executive Chairman
Key Highlights
- Latest Purchase: 1,070 BTC ($101M) at ~$94,004 per Bitcoin.
- Total Holdings: 447,470 BTC ($27.97B average cost basis).
- 2024 Yield: 74.3% ROI from Bitcoin investments.
Funding Strategy
The acquisition was funded through the sale of 319,586 shares during the same period, as disclosed in an SEC filing. MicroStrategy continues to leverage equity offerings to fuel its Bitcoin accumulation strategy, recently announcing plans to raise $2 billion via perpetual preferred stock offerings.
👉 Explore how institutional investors are leveraging Bitcoin
The "21/21 Plan": MicroStrategy’s Bold Bitcoin Roadmap
MicroStrategy’s aggressive investment strategy centers on its "21/21 Plan", which aims to:
- Raise $21 billion in equity** and **$21 billion via fixed-income instruments over three years.
- Acquire Bitcoin systematically, with 195,250 BTC purchased since October 2024 (45% of target).
The company has also sought regulatory flexibility by increasing its:
- Authorized Class A shares from 330M to 10.33B.
- Preferred shares from 5M to 1B+.
Why Bitcoin? The Yield Perspective
MicroStrategy’s Bitcoin holdings have delivered remarkable returns:
- Q4 2024 Yield: 48%.
- FY 2024 Yield: 74.3%.
With Bitcoin’s price volatility, the company views it as a long-term store of value and hedge against inflation.
👉 Learn how Bitcoin compares to traditional assets
FAQs
Q: How does MicroStrategy fund its Bitcoin purchases?
A: Primarily through stock sales and debt offerings, like the recent $2B perpetual preferred stock plan.
Q: What’s the average cost per Bitcoin for MicroStrategy?
A: ~$62,503 across all holdings (~$94,004 for the latest purchase).
Q: Why is MicroStrategy so bullish on Bitcoin?
A: Leadership sees Bitcoin as "digital gold" with superior scarcity and appreciation potential compared to fiat currencies.
Looking Ahead
MicroStrategy’s ninth consecutive week of Bitcoin acquisitions signals unwavering confidence in cryptocurrency as a corporate treasury asset. With its 21/21 Plan in motion, the firm is poised to remain the largest publicly traded Bitcoin holder.
Disclaimer: This content is for informational purposes only and does not constitute financial advice.
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